Red Hill Energy Inc-Mega JV.
Under the terms of a June 2005 Agreement, Mega has earned a 50% interest in Red Hill Energy Inc’s portfolio of Mongolian uranium exploration properties through expenditure of $US1.5 million. Exploration programmes are now being funded by Mega and Red Hill on a 50/50 basis and continue to be managed and operated by Red Hill. In addition, Mega and Red Hill are cooperating throughout the term of the Agreement in the identification and acquisition of other uranium projects in Mongolia.
The current Red Hill holding comprises 8 properties, consisting of 10 exploration licences covering a total area of 1850 km2.
The properties, which are at the early to medium exploration stage, cover various uranium occurrences, radiometric anomalies and favourable geological settings for uranium, which were detected by Russian/Mongolian exploration programmes in the 1966-1990 period.
In the 2006 field season, Red Hill focused its exploration efforts on identifying drilling targets on five priority properties. In late August to October 2006, Red Hill undertook drilling programmes comprising 3000 metres of aircore/RC drilling on the Baganurat property, and seven diamond drill holes totaling 1500 metres on the Maikhan property. The drilling intersected thin intervals of low grade uranium in the Baganurat property. No significant uranium mineralisation was intersected in the Maikhan property - refer to Mega's news release of November 24 2006.
In the 2007 field season, seven drill holes (total 1390.5 metres) investigating several uranium targets on the Emeelt licence area did not intersect anything of economic significance - refer to the Mega news release of June 28 2007.
Red Hill’s uranium exploration programmes are being undertaken by Mongolian geologists and field crews of the consulting group Mine-Info, directed by the Russian geologist Grigory Kislyuchenko, under the overall supervision of Red Hill’s manager in Mongolia, Glenn Griesbach. Mr. Kislyuchenko brings considerable uranium expertise to Red Hill, as he has 19 years uranium exploration experience with the Sosnovgeologia uranium company in Mongolia and Siberia.